U.S. index futures point to a negative opening this Tuesday, signaling a cautious reaction from investors to recent mixed corporate earnings and unfavorable economic indicators coming from Europe. The market also remains in anticipation of insights from Federal Reserve members and the impending release of American trade balance data, elements that may provide additional direction for market trends.

At 06:42 AM, Dow Jones futures (DOWI:DJI) fell 123 points, or 0.36%. S&P 500 futures dropped 0.39% and Nasdaq-100 futures fell 0.33%. The yield on 10-year Treasury notes was at 4.616%.

In the commodities market, West Texas Intermediate crude for December fell 1.56%, to $79.56 per barrel. Brent crude oil for January delivery dropped 1.68% near $83.75 per barrel. Iron ore with a 62% concentration, traded on the Dalian exchange, fell 0.48%, priced at $126.72 per ton.

On the economic agenda this Tuesday, the focus in the financial market falls on a series of speeches by Federal Reserve members, which are set to take place throughout the day, promising to impact investor expectations. Investors are also waiting for the 08 AM release of trade balance data, where a deficit of $59.9 billion for September is anticipated.

Subsequently, at 10 AM, the market awaits the release of the November economic optimism index, which provides an updated perspective on economic sentiment. Later in the afternoon, at 3 PM, the focus turns to the numbers for consumer credit in August, with an expected increase of $10 billion. Concluding the day, the attention of energy market operators turns to the American Petroleum Institute (API) report, scheduled for 4:30 PM, which will reveal the levels of oil inventories from the past week.

In Asia, markets closed down after a 6.4% drop in China’s exports, even after recent stimulus efforts. In Europe, in addition to corporate earnings, investors are reacting to the larger-than-expected drop in Germany’s industrial production. At 8:30 AM, a speech is scheduled from the Chairman of the Supervisory Board of the European Central Bank (ECB), Andrea Enria.

U.S. stocks closed modestly higher on Monday as expectations for future U.S. interest rates showed growth, adjusting after last week’s enthusiasm. Long-term interest rates rose by over 10 basis points, with the 10-year rate approaching 4.7%. Market attention turned to the upcoming speeches by Fed members, especially President Powell. The Dow Jones inched up 34.54 points or 0.10% to 34,095.86 points, its highest closing level in over a month. The S&P 500 rose 0.18%, and the Nasdaq Composite gained 0.30%.

On Tuesday’s corporate earnings front, investors will watch for reports from Uber (NYSE:UBER), DataDog (NASDAQ:DDOG), DR Horton (NYSE:DHI), Zimmer Biomet (NYSE:ZBH), Emerson (NYSE:EMR), before the market opens. After the close, reports are expected from Rivian (NASDAQ:RIVN), Devon Energy (NYSE:DVN), Occidental Petroleum (NYSE:OXY), Gilead Sciences (NASDAQ:GILD), Mosaic (NYSE:MOS), among others.

Wall Street Corporate Highlights for Today

Meta Platforms (NASDAQ:META) – Meta has banned political campaigns and advertisers from regulated sectors from using its new generative AI advertising products. The move aims to prevent the spread of electoral misinformation. The ban affects ads related to housing, employment, credit, social issues, elections, politics, health, pharmaceuticals, and financial services. Additionally, the Chan Zuckerberg Initiative, led by Mark Zuckerberg, sold shares in DoorDash and the iShares Core MSCI Emerging Markets ETF (LSE:0A3E) while increasing its investment in the Vanguard FTSE Europe ETF in the third quarter. The changes were disclosed in an SEC filing. DoorDash (NASDAQ:DASH) was completely divested, while the investment in the European ETF was significantly increased.

Intel (NASDAQ:INTC) – Intel is leading the race to secure billions of dollars in funding for secure microchip production facilities for U.S. military and intelligence use. The facilities aim to reduce dependence on imported chips from East Asia and would be funded by the $53 billion Chips Act from the Biden administration. Additionally, Intel canceled a planned investment in Vietnam that could have nearly doubled its operations in the country. Vietnam was seeking to expand its chip industry, but Intel suspended the expansion plan citing concerns about power supply and excessive bureaucracy.

Nvidia (NASDAQ:NVDA) – U.S. restrictions on Nvidia have opened an opportunity for Huawei in the AI chip market. While initially overshadowed by Nvidia, Huawei has launched the Ascend 910B, comparable to Nvidia’s A100. Huawei aims to secure a significant share of the $7 billion AI chip market in China, bolstered by government support and investments in semiconductors.

Baidu (NASDAQ:BIDU) – China’s AI leader Baidu has ordered 1,600 Ascend AI chips from Huawei as an alternative to Nvidia (NASDAQ:NVDA) in a $61.83 million order to be delivered by year-end, reflecting U.S. pressure on Chinese tech companies.

Alibaba (NYSE:BABA), JD (NASDAQ:JD) – Alibaba and JD.com stocks are down in pre-market trading on Tuesday following mixed trade data from China. Chinese exports have fallen for the sixth consecutive month in October, while imports surprisingly increased, suggesting stronger domestic demand.

WeWork (NYSE:WE) – WeWork, a SoftBank Group-backed startup, has sought bankruptcy protection in the U.S. due to onerous leases and a decline in demand for shared office spaces. SoftBank has agreed to convert debt into equity, eliminating around $3 billion in debt. The company expects to continue operating normally outside of the U.S. and Canada.

Tapestry (NYSE:TPR), Capri Holdings (NYSE:CPRI) – The U.S. Federal Trade Commission (FTC) has requested more information about the $8.5 billion deal between Tapestry and Capri Holdings. The companies plan to consolidate luxury brands like Kate Spade, Jimmy Choo, and Versace to compete with larger rivals in the European luxury market. The deal is expected to be completed in 2024.

Walt Disney (NYSE:DIS) – Walt Disney has hired Hugh Johnston, former PepsiCo (NASDAQ:PEP) executive, as CFO to address challenges in its TV business and investor pressure. The hiring aims to strengthen the leadership team amid a restructuring.

Roku (NASDAQ:ROKU) – Cathie Wood’s Ark Innovation ETF sold Roku shares for the first time since August, following the company becoming its largest position. The sale followed a 42% increase in Roku shares after robust quarterly results. Ark is the second-largest shareholder in Roku, with an 8.35% stake.

AMC Entertainment (NYSE:AMC) – AMC Entertainment shares have recently shown bullish activity, with more purchases of longer-term bonds seen as positive signs. This has occurred in a more positive fixed-income market environment and the success of a Taylor Swift film shown by AMC. AMC shares have risen 9.9% in the last five days, outperforming the S&P 500 index. The company is expected to release its third-quarter results soon.

Starbucks (NASDAQ:SBUX) – Starbucks will increase hourly pay for its retail workers in the U.S. by at least 3% starting in 2024. The company plans to expand its store network and raise the hourly income for baristas, with the possibility of larger increases for longer-tenured employees.

Citigroup (NYSE:C) – Citigroup is considering job cuts of at least 10% in several of its core businesses as part of a reorganization led by CEO Jane Fraser. The restructuring aims to simplify the bank and boost its stock price. Discussions are in the early stages, and the number of job cuts may change.

Goldman Sachs (NYSE:GS) – According to a note from Goldman Sachs, hedge funds aggressively bought U.S. stocks last week, driving a rally with a focus on technology stocks. The buying activity was the most intense in two years, and some short positions became expensive as stock prices rose. Health and financial stocks were sold, with the activity mainly focused on North America.

Morgan Stanley (NYSE:MS) – James Gorman, CEO of Morgan Stanley, plans to step down as chairman by the end of 2024 after relinquishing his CEO position to Ted Pick in January. Gorman has expressed his desire to teach, spend more time with family, and play golf, ruling out a foray into politics.

HSBC (NYSE:HSBC) – Global stocks are poised for a double-digit rally in 2024 if the Federal Reserve adjusts its monetary policy and avoids a recession, according to HSBC Holdings Plc strategists. They expect the FTSE All-World index to finish the next year with nearly a 10% increase. The team sees technology and consumer sectors as preferred.

Moody’s (NYSE:MCO) – Credit rating agency Moody’s is establishing a dedicated unit for private credit research and assessment, led by Ana Arsov. With over $1.3 trillion in assets under management, the global private credit market represents about 12% of the alternative market, attracting long-term investors. Moody’s aims to provide reliable analysis for this sector.

Cigna (NYSE:CI) – Health insurer Cigna is considering selling its Medicare Advantage business due to margin profit challenges and changes in U.S. government reimbursement. The company is exploring options with an investment bank, and the business could be worth billions of dollars.

Sanofi (NASDAQ:SNY) – Sanofi is being investigated for alleged market manipulation in France. The preliminary investigation is related to the alleged dissemination of misleading information about the company’s financial communication, involving the launch of the Dupixent drug in 2017. Sanofi denies knowledge of the investigation. The company’s shares fell up to 1.2% in pre-market trading.

Bristol Myers Squibb (NYSE:BMY) – Bristol Myers Squibb has acquired the experimental therapy ORM-6151 from Orum Therapeutics to treat a type of blood cancer for up to $180 million. The treatment received FDA authorization for an initial study and involves an initial payment of $100 million and milestone payments.

Bumble (NASDAQ:BMBL) – Whitney Wolfe Herd, founder of Bumble, will step down as CEO of the dating app operator and will be replaced by Lidiane Jones, a seasoned executive from Slack. The news caused the company’s shares to drop on Monday. Whitney will remain as executive chairman.

Airbnb (NASDAQ:ABNB) – An Italian judge has ordered the seizure of $836.40 million from Airbnb’s European headquarters in Ireland due to alleged tax evasion, citing non-payment of 21% of hosts’ income to Italian tax authorities. Three former managers are also under investigation. Airbnb denies wrongdoing.

General Electric (NYSE:GE) – General Electric’s aviation unit has agreed to pay $9.4 million to settle federal government allegations that a Massachusetts factory sold defective parts to the U.S. Army and Navy. The settlement resolves claims that GE Aerospace violated the Federal False Claims Act.

Kinder Morgan (NYSE:KMI), NextEra Energy (NYSE:NEE) – Pipeline operator Kinder Morgan will acquire NextEra Energy Partners’ pipelines in South Texas for $1.82 billion, amid growing consolidation in the sector. The transaction is expected to be completed in the first quarter of 2024.

General Motors (NYSE:GM) – GM plans to temporarily suspend production of its fully autonomous Cruise Origin van, following the unit’s announcement of a pause in all driverless operations. Cruise CEO Kyle Vogt noted that the company has already produced hundreds of Origin vehicles, which is sufficient for the short term. Additionally, GM plans to build a more affordable version of the Chevrolet Bolt in Kansas and a new series of premium electric vehicles for the Cadillac and Chevrolet brands in Michigan as part of its $13.3 billion investment plan in U.S. facilities through 2028.

Toyota Motor (NYSE:TM) – Toyota will extend production cuts at a joint venture in China for three more months due to increasing competition. Sales to dealers will be reduced to 66,000 units in December, 60,000 in January, and 38,000 in February.

Ford Motor (NYSE:F), S&P Global (NYSE:SPGI) – S&P Global Ratings has upgraded Ford Motor Co.’s rating to BBB-, restoring its investment grade after a downgrade in 2020. The agency cited expectations of strong EBITDA margins and a robust cash balance. The news followed a wage increase agreement with the UAW union and mixed quarterly results.

Tesla (NASDAQ:TSLA) – Tesla will raise prices of Model Y variants in China following an October update. The Model Y is one of the best-selling electric vehicles in China, and Tesla is adjusting prices after a period of competitive cuts and increases in the Chinese EV market.

General Dynamics (NYSE:GD) – The United Auto Workers (UAW) union announced on Monday that members at General Dynamics factories in Ohio, Michigan, and Pennsylvania voted in favor of a new labor agreement. The four-year agreement includes a 14% wage increase and protection against inflation.

Earnings

UBS (NYSE:UBS) – UBS Group AG reported a loss of $785 million in the third quarter due to expenses related to the acquisition of Credit Suisse, even though it demonstrated stability in its wealth management division, with net inflows of $22 billion. UBS CEO Sergio Ermotti indicated that the bank’s share buyback program is likely to resume in 2024. Ermotti mentioned that the bank is finalizing its three-year plan to determine the amount to be returned to shareholders. The share buyback program had been paused earlier this year.

Tripadvisor (NASDAQ:TRIP) – The online travel company saw a nearly 12% increase in pre-market trading on Tuesday after exceeding third-quarter projections. Tripadvisor reported adjusted earnings of 52 cents per share with revenue of $533 million, surpassing LSEG analysts’ expectations of 47 cents per share and $505 million in revenue.

Hims & Hers Health (NYSE:HIMS) – The telemedicine company experienced an over 8% increase in pre-market trading. Hims & Hers raised its full-year revenue forecast to $868 million to $873 million, up from the previous estimate of $830 million to $850 million. The company also raised its expectations for full-year adjusted EBITDA.

Vertex Pharmaceuticals (NASDAQ:VRTX) – The biotechnology company fell short of revenue estimates in the third quarter. Vertex reported adjusted earnings of $4.08 per share on revenue of $2.48 billion, falling short of LSEG analysts’ expectations of $3.97 per share and $2.50 billion in revenue.

Veeco Instruments (NASDAQ:VECO) – Veeco Instruments exceeded profit and revenue expectations in the third quarter. The thin-film processing equipment manufacturer reported adjusted earnings of 53 cents per share and revenue of $177.4 million, surpassing FactSet analysts’ predictions of 37 cents per share and $168.2 million in revenue.

Alteryx (NYSE:AYX) – Alteryx shares rose 17% in pre-market trading after the software company reported quarterly results with a smaller-than-expected loss and sales that exceeded analysts’ estimates. The net loss was $50 million, or 70 cents per share, while revenue increased 8% to $232 million. Alteryx shares had fallen 40% this year, compared to a 14% increase in the S&P 500 index.

International Flavors & Fragrances (NYSE:IFF) – International Flavors & Fragrances announced it would continue its cooperation agreement with Icahn Capital (IEP). The parties agreed to appoint one director from Icahn and one mutually agreed-upon director to the IFF board for the 2024 proxy season. Additionally, IFF reported third-quarter adjusted earnings and revenue that exceeded analysts’ estimates.

Fabrinet (NYSE:FN) – Fabrinet reported better-than-expected results for the fiscal first quarter, both in terms of revenue and net income. Fabrinet announced adjusted earnings of $2 per share with revenue of $685.5 million, surpassing FactSet analysts’ predictions of $1.85 per share in earnings and $659.2 million in revenue.

Goodyear Tire & Rubber (NASDAQ:GT) – Goodyear Tire & Rubber reported mixed third-quarter results. The company reported a loss of $89 million but highlighted lower raw material costs and signs of improvement in sales volume, as well as strong travel demand in the U.S. However, when adjusted for extraordinary items, earnings were 36 cents per share, exceeding analysts’ expectations of 19 cents per share.

Sanmina (NASDAQ:SANM) – Shares of the electronics manufacturing company dropped nearly 11% in pre-market trading after Sanmina provided a downbeat outlook for the first fiscal quarter. Management stated that the company’s first-quarter outlook is “trending down sequentially,” and Sanmina expects challenges in the next two quarters.

Coterra Energy (NYSE:CTRA) – The energy company saw a 3% increase in pre-market trading after Coterra Energy reported adjusted earnings of 50 cents per share in the third quarter, surpassing analysts’ expectations of 44 cents per share, according to FactSet. The company also raised its production outlook for the full year.

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